China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
Recession worry, data drag Wall Street lower (Reuters)
2008.10.16By Leah Schnurr 5 minutes ago
NEW YORK (Reuters) - Stocks slid on Wednesday as investors worried that efforts to untangle credit markets would not prevent recession and Federal Reserve Chairman Ben Bernanke acknowledged that the economy faced a significant threat.
The broad Standard & Poor's 500 stock index dropped more than 6 percent.
A bleak September retail sales report set the tone early, underscoring the severity of the squeeze on consumers faced with sliding home values, a rocky stock market and tight credit.
Shares of retailers were bruised by the data, including Dow components Wal-Mart Stores and Home Depot. Wal-Mart fell 4.4 percent to $52.06, while Home Depot was down 3.8 percent at $20.27.
Caterpillar Inc gave up 9.2 percent at $43.11. Exxon Mobil was among the biggest drags on the Dow, falling more than 8 percent as the price of U.S. crude for November delivery fell 5 percent to $74.71 a barrel.
"It looks like everything that's economically sensitive is getting hit pretty good," said Scott Vergin, portfolio manager at Thrivent Financial in Minneapolis, Minnesota.
"The thing is how much has the credit crunch already impacted the real economy?" added Vergin. "That's what everyone's really worried about."
The Dow Jones industrial average slumped 509.11 points, or 5.47 percent, to 8,801.88. The Standard & Poor's 500 Index shed 65.87 points, or 6.60 percent, to 932.14. The Nasdaq Composite Index lost 101.75 points, or 5.72 percent, to 1,677.26.
Speaking in New York, Bernanke said the economy faces a significant threat from the credit crisis, adding to investors' recession fears. For details, see [ID:nN15308065]
Strong results from Coca-Cola, the world's largest soft-drinks maker, helped it buck the trend after it posted quarterly profit that beat Wall Street's expectations. Shares of Coke were up 4.1 percent at $45.54.
Intel Corp also posted better-than-expected results after the closing bell on Tuesday. After pushing higher earlier, shares of the computer chip maker retreated 1.4 percent to $15.71.
The slide in oil prices helped airline stocks. The Amex Airline Index rose 0.5 percent. Delta Airlines was up 5.3 percent at $7.74. The company earlier reporting a wider-than-expected quarterly loss.
But oil's drop hurt Exxon, which fell 8.7 percent to $66.14, while Chevron shed 7.7 percent to $63.33.
Financial shares fell after an influential bank analyst at
Oppenheimer & Co, said U.S. banks were not out of the woods despite the government's plan to stabilize key players by investing $250 billion.
Shares of State Street Corp , one of the world's biggest institutional asset managers, tumbled more than 12 percent to $49.78. The company said it moved forward the release of its results and received some of the $250 billion the U.S. Treasury is investing.
(Additional reporting by Ellis Mnyandu; Editing by Kenneth Barry)
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China says to continue stable monetary policy (Reuters)
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Economic growth concerns drag down indexes (Reuters)
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Russia tax office files suit vs PWC on YUKOS audit (Reuters)
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Japan keeps view that economy is recovering (Reuters)
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
